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"An overspending account sounds like a good idea. I plan to keep 3 years living expenses in cash and not include it in the withdrawal rate calculation. This allows me to limit my withdrawals to times when the market is up and let it ride for a couple of years if necessary.

I think the most vulnerable time is the first 3 to 5 years of retirement. If the market holds up then the increase should make the safe withdrawal rate above what is needed. I hoping my 3 year 'slush fund' will serve as insurance against a crash immediately after I retire. I would hate to have to go back to work!"

The cash cushion is sadly a neglected vehicle nowadays. Since the equities markets are volatile and unpredictable in the short-term, cash for living expenses should be everyone's first priority as soon as they are employed. Cash management accounts are a great vehicle for retirees, especially in the early stages of retirement when withdrawal schedules and tax implications are still in the testing stages. It would be nice to spread the word to today's younger investors that cash isn't "Dead Money", but rather Available At All Times. I've set up the Personal Savers Plan & Ideas board in the Speaker's Corner for topics concerning new investors as well as seasoned investors with no savings habits. It would be great to have some of the contributors on this board share some insight there as well.
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